Goodyear Tire & Rubber Co (GT)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,668,000 | 4,993,000 | 5,105,000 | 5,253,000 | 5,300,000 | 5,087,000 | 5,174,000 | 5,145,000 | 4,999,000 | 4,314,000 | 4,212,000 | 3,106,000 | 3,078,000 | 2,860,000 | 2,833,000 | 3,510,000 | 4,351,000 | 4,835,000 | 4,847,000 | 4,808,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $4,668,000K)
= 0.00
The debt-to-capital ratio of Goodyear Tire & Rubber Co. has been relatively stable in the range of 0.60 to 0.63 over the past eight quarters. This ratio indicates the proportion of the company's capital that is financed through debt, with values above 0.5 suggesting a higher reliance on debt financing.
The slight fluctuations in the debt-to-capital ratio over the quarters suggest that Goodyear has maintained a consistent level of debt relative to its total capital structure. A ratio of 0.62 to 0.63 means that around 62-63% of the company's capital is funded by debt, indicating a moderate level of leverage.
Overall, a stable debt-to-capital ratio around the 0.62 to 0.63 range indicates that Goodyear has been managing its debt levels consistently in relation to its capital base, which may be a strategic choice to support growth initiatives or to take advantage of favorable financing conditions.